A once projected thriving textile company that became bankrupt is set to make a comeback. The company, Ayka Addis Textile and Investment Group was established in May 2012 with a total capital of 1 billion and a paid up capital of 679 million birr by Turkish investment groups. The factory has been out of business for more than a year and has been paying its 4500 staff for free work due to lack of operation.
According to Melaku Alebel, Minister of Trade and Industry, the Development Bank of Ethiopia is taking over the factory in accordance with the banking system.
Due to the inability of the company to repay the 3.2 billion birr loan that was provided by the Development Bank of Ethiopia, the development bank had made attempts to auction it. The loan was provided at the onset of 2008 with the expected loan repayment time provided till 2013, which of course was unsuccessful. Ayka Addis Textile & Investment Group is the first company to be auctioned, and it failed to attract bidders who can offer 1.8 billion birr. The company failed to attract bidders primarily because of the high price set by the development bank as well as its competitiveness with regards to its marketing.
As from the last fiscal year, the state owned bank had ratified the annual budget to manage some companies that failed to attract buyers, including the Turkish company, Ayka Addis group since there are thousands of employees under the company.
However as Melaku said, the reason for this is the failure of the concerned parties to resolve their problems and the failure of the entire Development Bank of Ethiopia to take responsibility for the factory.
“In the future, short, medium and long term plans will be prepared and the workers will be able to return to work and the factory will be operational in a short period of time,” he stated.
Ayka Addis Textile Factory is located on a 20.1 hectares piece of land with 4,500 workers and it is said to have the capacity to employ more than 10,000 workers.
On Friday, Officials from the Ministry of Trade and Industry, including Melaku Alebel, officials from the Development Bank of Ethiopia and the Confederation of Trade Unions visited the factory to discuss issues that will enable it to start operations soon.
Ayka Addis was once considered to be an anchor investment that Ethiopia succeeded to attract. However, it did not take long for the company to face the dreadful realities of shortages in raw materials mostly cotton, lack of skilled labor and power outages. The political crisis also contributed to the malfunctioning of Ayka Addis. At first, Ayka Addis seemed to be doing well but failed to sustain the momentum and since 2014, it was operating on a loss until it declared bankruptcy in 2017. The company is believed to have created 7,000 jobs at the time.
Ayka Addis Textile From depths of bankruptcy to comeback
Israel extends support to Ethiopia to combat the locust menace
The Israeli government has offered a helping hand to the Ethiopian government with the provision of 27 drowns and equipment as well as offering training to combat the desert locusts.
Following the request by Prime Minister Abiy Ahmed, Israel’s Minister of Foreign Affairs, Gabi Ashkenazi instructed to deploy an ad-hoc task force of locust fighters and experts to Ethiopia in order to join forces with their Ethiopian counterparts and control the spread of the swarms in the country.
During the past few months, Ethiopia faced an overwhelming invasion of desert locust swarms that damaged crops and pasture fields in many regions.
Embassy of Israel in Addis Ababa is now leading the operation, in coordination with the Ethiopian concerned bodies.
Israel’s top locust expert, Yoav Mortro heads the task force, which includes three additional members who specialize in different fields of expertise.
The task force plans to operate in Ethiopia for two weeks, during which it will demonstrate and train more than 200 Ethiopian locust fighters, governmental agencies, and international organizations representatives.
The task force brings more than 2 tons of equipment and advanced appliances that will be handed over to the Ethiopian authorities with the conclusion of the operation.
According to the embassy, Israel is thrilled to share is experience and know-how with Ethiopia.
This operation symbolizes the strong and long-lasting relations between Israel and Ethiopia, which are demonstrated during normal and challenging times.
Members of the task force met Ethiopian officials from the Ministry of Agriculture on Wednesday 11th November 2020.
Desert locust is one of the most destructive pests, as it is highly mobile and feed on large quantities of any kind of green vegetation, including crops, pasture, and fodder.
In most cases, the common response to locust swarms invasion is aerial spraying of crops using pesticides.
Israeli researchers developed a unique and innovative method, based on the accumulated experience with these phenomena in Israel.
This cutting-edge method is based on daytime surveillance by drones and data analysis of the swarm’s movement, followed by night spraying while the pests are static.
According to the World Food Organization, In Ethiopia, a few immature swarms persist in the Afar region while more immature swarms are present in the Somali region between Jijiga and Degeh Bur, some of which are maturing. In the Ogaden, second and third instar hopper bands are present between Warder and the Somalia border, and at least one swarm has laid eggs near Kebri Dehar.
“Important and widespread breeding continues in eastern Ethiopia and central Somalia where new swarms are expected to start forming in early December and move south to Kenya and southern Somalia by mid-December. Control operations are underway,” stated FAO signaling another round of swarm.
The advancements in Ethiopia’s Tigray crisis
The government reaffirmed that the gangsters under the TPLF will be dismantled shortly and rule of law and peace will be prevailed in the area.
It has disclosed several successes have been achieved in the operation held in the northern part of the country since the gangsters launched an offensive act on the Ethiopian Defense Force on Tuesday November 4.
The government disclosed that the operation is focusing on librating areas that were controlled by the gangsters force and encircled illegal actors some of whom have already been charged on treason and other massive criminal acts by the Federal Attorney General.
Redwan Hussein (Amb), State of Emergency Task Force Spokesperson, told media on Tuesday November 10 that the TPLF has crossed the non-negotiable red line in attacking the northern command based in Meqele and other parts of Tigray region.
“In Meqele we do not have combatant military personnel except health workers and administrative staffs. In other posts we have soldiers but the attack actually occurred simultaneously in several posts, in Meqele and thus it was easier because we do not have several troops. But in other areas they try to execrate themselves, first repealing the attack and protecting themselves and as a result they manage to escape and retreat in some area in the Eritrean border and other areas,” Redwan said.
“In some post it took three days for the force to keep itself safe from attack and additional forces arrived and rescue them,” he added.
According to Redwan, on November 5, the gang issued a declaration that it had armed itself with weaponry including missiles, which they took from the defense force as they stated that they shall attack anybody whoever comes to face them.
“This shows the account of who began the conflict in the first place,” he said.
He said that if Ethiopia has to sustain like any country; rule of law has to be reviled, the constitution has to be appealed and has to make assured not any entity, a group or individual, whether armed or not could not be runamok and become the law to self.
“So a country has to be run by the rule of law. Therefore,any region or district has toabide by the constitution and the federal government has a moral and constitutional right and obligation to make sure that happens,” he added.
The ongoing operation in Tigray Regional State targets mainly to salvage the whole nation and prevail the rule of law in the land.
“The very objective of this operation are three, it includes; making sure those who are involved in treason face legal measures, and to make sure that any weaponry taken by the illegal group to be possessed by the government, who is responsible to control the arms, and lastly to impose the rule of law in the area,” the Spokesperson said.
Stating the damage of having dangerous arsenal in regional state and TPLF junta group alone, Redwan said one of the objectives of the continuing operation is disarming the arsenals which are in the hands of the group.
He appreciated the concept of negotiation that the government had tried in its best to solve the difference, but the group of gangs at TPLF refused. He added that the upcoming talk will be going based on the end of the operation that the government set to accomplish on the latest rule of law mission.
“We may talk when the three targets that the government set to attain have been achieved, that is, the rule of law restored, the hostage freed and arms obtained with the gang members arraigned into the legal process,” he explained.
He said that in the eve of the attack the regional leader called the Prime Minister and had a conversation on handling the issue amicably. The PM just promised him that they can manage issues in cordial way.
He underlined that the Defense Force that retreated, have regrouped and come back to engage in offensive attack and have since ceased several areas. Since the press conference was given the government disclosed that its forces have controlled massive areas and strategic towns and plots from the gang force.
The NGO focused in improving favorable coffee markets
Love to nation non-governmental organization is going to prepare an international coffee and tourism event that creates a favorable environment for the promotion of Ethiopia coffee as a country of origin.
The organizers announced that the event will be a six day consecutive event as from the25th to the 30th of January to be held at the Elily International Hotel in Addis Ababa. The event seeks to increase Ethiopia’s foreign exchange earnings from coffee exports.
Love to nation is a non-profit organization that focuses on the proper use and development of country’s agricultural, minerals and tourism resources.
“In collaboration with partners from around the world, we are introducing Ethiopian coffee to international business and community investors and technologists,” said Henock Megersa founder of love to nation NGO.
“Love to nation is an institution that came to Ethiopia seeking to invest and work in partnership with our country’s investors,” he explained.
The organizers explained that the forum will bring together coffee growers and processors as well as coffee exporters and international buyers, who will be present at the event.
Henock, said the purpose of the event is to help coffee growers make a better income. He said the capacity building training will be a convenient platform for them to get technology and finance.
“The exhibition will feature coffee buyers and tasters from different countries,” he added.
